Correlation Between MPC Container and Pyxis Tankers

Can any of the company-specific risk be diversified away by investing in both MPC Container and Pyxis Tankers at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MPC Container and Pyxis Tankers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MPC Container Ships and Pyxis Tankers, you can compare the effects of market volatilities on MPC Container and Pyxis Tankers and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in MPC Container with a short position of Pyxis Tankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of MPC Container and Pyxis Tankers.

Diversification Opportunities for MPC Container and Pyxis Tankers

0.2

Correlation Coefficient

MPC Container  Pyxis Tankers

Modest diversification

The 3 months correlation between MPC and Pyxis is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding MPC Container Ships and Pyxis Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Tankers and MPC Container is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on MPC Container Ships are associated (or correlated) with Pyxis Tankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxis Tankers has no effect on the direction of MPC Container i.e., MPC Container and Pyxis Tankers go up and down completely randomly.

Pair Corralation between MPC Container and Pyxis Tankers

Assuming the 90 days horizon MPC Container Ships is expected to generate 1.15 times more return on investment than Pyxis Tankers. However, MPC Container is 1.15 times more volatile than Pyxis Tankers. It trades about 0.1 of its potential returns per unit of risk. Pyxis Tankers is currently generating about -0.02 per unit of risk. If you would invest  152.00  in MPC Container Ships on October 8, 2025 and sell it today you would earn a total of  20.00  from holding MPC Container Ships or generate 13.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

MPC Container Ships  vs.  Pyxis Tankers

MPC Container Ships

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in MPC Container Ships are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MPC Container reported solid returns over the last few months and may actually be approaching a breakup point.

Pyxis Tankers

Risk-Adjusted Performance

Weakest

Over the last 90 days Pyxis Tankers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Pyxis Tankers is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with MPC Container and Pyxis Tankers

The main advantage of trading using opposite MPC Container and Pyxis Tankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MPC Container position performs unexpectedly, Pyxis Tankers can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pyxis Tankers will offset losses from the drop in Pyxis Tankers' long position.

The idea behind MPC Container Ships and Pyxis Tankers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.